report

Entrepreneurship Due Diligence Report

External Environment:

• How is the economic environment where the business is located?
• How is the social environment where the business is located?
• How is the technological environment where the business is located?
• How is the political/legal environment where the business is located?

Industry Environment:

• What is the state of the industry in which the business operates? Is the industry in growth mode, or is it mature or in decline?
• How does this business compare to competitors in its industry?
• What is the business’ reputation in the industry and the community?
• How many competitors are there? What are their strengths and weaknesses?

Business Environment:

• What is the state of the business’ target market? Is its target market growing or shrinking?
• Are its target customers undergoing demographic changes, such as aging, loss of disposable income, or other transitions that could put the business at risk?
• Is the business’s customer base growing? Is the business adequately diversified, or is it overly dependent on one or two big customers?
• What kind of staff does the business have? Do employees have skills that are difficult to find elsewhere? Are their wages average, above average, or below average for the industry?
• Is there a lot of turnover at the business?

Finances:

• Are the business’ sales increasing?
• What is the business’ profit margin?
• Does the business have adequate funding?
• How much debt does the business have?

Conclusion:

• Is this a business worthy of consideration for investment?
• What are the reasons for your decision?

Adapted from https://www.allbusiness.com/questions-to-ask-when-buying-a-business-567-1.html